KEY MESSAGES
According to insights from the subject matter expert (SME) panel, the following are the key messages from IFMA’s Experts’ Assessment: The Workplace Post-COVID-19 study. SMEs:
Expect significant space reductions
- 59% expect organizations to reduce their overall real estate footprints, leverage more flexible spaces with shorter leases, and use coworking locations more.
- 69% opine that organizations will accelerate using these strategies in case of a recession to consolidate footprints and cut costs.
- SMEs expect that workers will likewise want to make greater use of remote work to help mitigate the effects of cost increases during the recession.
Anticipate demand will continue to shift toward flexibility and quality
- The aforementioned expectations for greater space reductions, a shift toward shorter leases and increased use of coworking will impact office real-estate demand in metro areas. SMEs anticipate demand for offices to decline in major metro areas in favor of midsized cities, where demand would be higher. SMEs do not expect a significant change in smaller metro and rural areas.
- Demand will continue to shift from Class C and B building categories toward coworking and Class A locations.
- SMEs expect the allocation of square feet/meter per employee on site to increase, the overall office size to shrink and the space allocated to amenities to shift. These shifts could mean that there would be an increase in the square feet/meters per work point but an overall decrease in the number of dedicated workspaces, while the spaces devoted to communal areas and amenities would increase. The ratios of private-to-public space will shift in the public’s favor.
- SMEs recommend developing new industry metrics and benchmarks for understanding how organizations plan and measure space.
Expect more digital twins and virtual office environments
- The rapid inclusion of IoT devices in the built environment will enable digital twins. Debate raged about whether most buildings would have a digital twin by 2030. While 40% believed buildings would have a digital twin, the majority did not.
- Virtual office environments will continue to grow in importance, though many do not think that cartoon-like avatars would be the preferred choice.
Resist employee monitoring
- Employee monitoring is on the rise. Yet, SMEs resist the use of digital employee monitoring, noting that for knowledge work, measuring by results and trust are more effective means for increasing productivity.
- 60% expect governments will enact more limits on workplace monitoring.
”Those that have courageous leadership will be bold about reducing square meters. They will be looking for shorter and more flexible leases and, if visionary, will also see the appeal of mixed-use (live/work/play) spaces.”
Subject Matter Expert — “The Experts’ Assessment”
Envisage mixed reality interfaces to leading vector for technological development toward 2030
- 81% expect mixed reality interfaces (including augmented and virtual reality) will be prevalent for employee training and onboarding in most Fortune 2000 industries.
- 75% envisage platforms that create fit-for-purpose apps will be ubiquitous using touch, voice and gesture to ensure consistent user experiences across web, mobile, wearable, conversational and immersive touch points.
- Other essential technologies that SMEs expect to see in the majority of Fortune 2000 offices in 2030 include AI-enabled integrated workplace management and building management systems and frictionless offices. SMEs do not believe digital humans and holograms in the workplace will be common in most Fortune 2000 office environments.
Expect back office barriers will remain a challenge
- Creating integrated workplace experiences for employees across work settings remains one of the critical FM challenges in the coming years. Overcoming organizational barriers, cybersecurity issues and differences between employee and manager expectations are some of the biggest hurdles that organizations must address.
See workplace strategy and management bringing the pieces together
- Workplace strategy is “the intentional, strategic alignment of the workplace to the business goals, vision and culture of an organization.” It requires an integrated, interdisciplinary approach.
Perceive the office as a vehicle for brand development
- While SMEs could not reach a consensus on the office’s primary purpose, the leading responses are developing corporate identity and culture, innovation, complex problem-solving, and social connectivity and networking.
- SMEs still see offices as vehicles for culture and brand development, as most SMEs (72%) expect the office to primarily be locations for collaboration, celebration and social engagement.
“The SEC has spoken. Blackrock has spoken. ESG isn't going away. Money is talking, and bond ratings and share values are intrinsically tied to ESG.”
Subject Matter Expert — “The Experts’ Assessment”
Presume digital tools and at-home work point setups to be the most critical amenities & services
- SMEs expect digital tools (92%) and at-home work point setups (83%) will be workplace management & strategy’s most important amenities and services.
- 63% anticipate that regulations will mandate that employers provide solutions and support employees working remotely.
- 59% believe facilities management would be responsible for employees’ total work experiences. There is a concern as to how best to do so and if and who should conduct at-home risk assessments.
Motivation for coming to the office is dynamic and changing
- 2022 has seen organizations institute their return-to-office programs and policies. Many organizations have met with resistance.
- SMEs assessed reasons that motivate workers to come to an office. The top 3 reasons are to participate in in-person meetings, for professional development, mentoring or coaching, and for social and informal interactions with colleagues.
- When we shift our view toward 2030, SMEs' perspectives are much more varied. The top 3 reasons to come to an office in 2030 are participating in in-person meetings, stepping into a highly experiential workplace and working on innovation projects.
ESG roars to the forefront
- Buildings’ environmental footprints are massive and need to be reduced. SMEs share this perspective.
- 59% consider reducing buildings’ and operations’ environmental impact (59%) as a leading FM business driver.
- The overwhelming majority (89%) expect investments into the built environment to make buildings more sustainable and to integrate them into a circular economy will increase.
- SMEs (82%) expect FM will be responsible for ensuring buildings are environmentally sustainable and must be able to demonstrate it through ISO-compliant or equivalent.
- By 2030, SMEs expect:
- FM ESG goals are grounded in science (72%)
- FM contributions are impact-oriented (87%)
- FM products and services are assessed for their impacts across value chains and networks (79%)
- FM ESG key performance indicators (KPIs) are part of enterprise-wide interdependent and integrated KPIs (82%)
Anticipate buildings will become networked; FM needs to, too
- As buildings become more sophisticated and potentially interactive with the surrounding environment, 62% of SMEs expect facility managers will engage with urban networks to manage their buildings.
Note that stress is leading health and well-being challenges
- According to SMEs, employees’ ongoing stress and mental health challenges, isolation and burnout are the three most pressing challenges facing organizations toward 2030.
- Worker health is a critical FM challenge as worker health is essential for well-functioning workplaces and labor markets. Studies show that healthy people are more likely to be employed, have good jobs and retire at older ages.1
- The COVID-19 pandemic exacerbated mental health in many countries. According to the Organisation for Economic Co-operation and Development (OECD), as many as one-quarter of the population in high-income countries are at risk of anxiety and depression.2
Anticipate that FM responsibilities will be more complex and require interdisciplinary solutions toward 2030
- As noted in the previous Experts’ Assessment study, the leading FM responsibility toward 2030 is to create deeper alignment with other business support functions like HR, IT and CRE. However, between 2020 and 2022, support for “greater alignment” declined by half or 36%.
- SMEs noted that the second most important FM responsibility is to reduce buildings’ environmental impacts. Owning the workplace experience is SMEs’ third most important responsibility.
- Operating healthy buildings was the second most important priority in the 2020 Experts’ Assessment report. This option fell to the fourth most important priority (see figure below).
Changing FM responsibilities
2020 | 2022 |
|---|---|
Establish deeper alignment with other business support functions | Establish deeper alignment with other business support functions |
Focus on driving a healthy building | Reduce buildings’ environmental impact |
Own the workplace experience | Own the workplace experience |
Deployment of a workplace strategy | Focus on operating a healthy building |
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